HOBSONS Bay council has refused a developer’s offer of $1.5 million to address a shortfall of 80 car parks resulting from a proposed restaurant development on the Altona foreshore.
The council wanted a contribution of $2 million to $3.36 million from Strategic Property Developments, which wanted to lease council land for a restaurant at the beach end of Pier Street, backing on to Bent Street.
The development would have gone on top of an existing car park next to Weaver Reserve and adjacent open space in Bent Street.
A 5-2 council majority last week voted to terminate the expressions- of-interest (EoI) process to deveop the Pier Street site.
Cherry Lake councillor Tony Briffa, who abstained from voting, said the EoI process had been flawed.
On December 1, 2009, the council invited expressions for leasing or buying council-owned land at 10 Pier Street (formerly known as 141 Esplanade and 1 Bent Street). Addressing last week’s council meeting, Cr Briffa asked why the council wasn’t following its own urban design framework, which identified only half of the site for development.
Acting planning director Natalie Walker replied that the framework was not binding.
Business and finance director Glenn O’Sullivan said the prospective developer originally offered $56,000 and last week upped the offer to $1.5 million
He said this was “still below market value”.
Strand ward councillor Paul Morgan, who voted against ending the EoI process, asked if the council had made a counter offer.
Mr O’Sullivan replied: “During the course of the discussions the developer was informed of a figure, that we’d be looking at at least $26,000 up to around $42,000 (per parking space), based on the 2011 Altona car parking cost study. They thought the $42,000 was too much to pay.”
Strand ward councillor Peter Hemphill said it would cost $2.8 million to $3.2 million to build a new car park.
“The real question is, why should the ratepayers pay out the money to fix a developer’s problem?”
The developer did not respond to the Weekly’s request for comment.
